Overall inflation in Germany fell in October to 2.8% year-on-year, which represents a half percentage point decline compared with the 3.3% advance recorded in September, according to data confirmed by the Federal Statistical Office (Destatis).
At the same time, the harmonised inflation rate used by Eurostat for its cross-country comparisons also saw a drop of five tenths in the tenth month of the year, remaining at 2.8% year-on-year as well.
The October reading represents the most moderate increase in prices in the euro zone’s largest economy since July and reflects the impact of the cut to the tax on fuels applied at the beginning of the month, a measure that will remain in effect in Germany until the end of the year.
"In October, the inflation rate was again slightly below 3%," highlighted Ruth Brand, chair of Destatis, adding that the persistent high inflation rate was still being driven mainly by developments in energy prices, although "it is likely that the new discount on fuels introduced at the beginning of October has moderated inflation to some extent."
In this context, the rise in energy prices eased in October to 12.2% year-on-year, versus 14.6% observed in September, while food prices increased by 0.4%, the same change as the previous month.
On the other hand, the price of goods rose in October by 3% compared with the same month of the previous year, eight tenths less than the increase recorded in September, while services raised their cost by 2.5%, compared with 2.7% in the preceding month.
As a result, core inflation, which excludes energy and food, stood at 2.1%, three tenths below the September figure.